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CA SB355

CA SB355
Judgment debtor employers: Employment Development Department.


summary

Introduced
02/12/2025
In Committee
08/29/2025
Crossed Over
05/29/2025
Passed
09/09/2025
Dead

Introduced Session

2025-2026 Regular Session

Bill Summary

An act to add Section 96.9 to the Labor Code, relating to employment.

AI Summary

This bill adds a new section to California's Labor Code that requires employers who have a final judgment against them for unpaid wages or other labor law violations to take specific actions within 60 days of the judgment. The employer must either fully satisfy the judgment, post a required bond, or enter into an approved installment payment agreement. If the employer fails to do so, they will be subject to a $2,500 civil penalty issued by the Labor Commissioner. Furthermore, if the employer does not comply, the Labor Commissioner will send a written notice warning that the unsatisfied judgment will be reported to the Employment Development Department's Tax Support Division as a potential tax fraud case. If the employer still does not comply within 90 days of this notice, the Labor Commissioner must provide the Employment Development Department with a summary of the judgment and detailed identifying information about the liable persons or entities, including social security numbers, tax identification numbers, and addresses. This bill aims to create a stronger enforcement mechanism for ensuring that employers pay court-ordered judgments related to labor law violations.

Committee Categories

Budget and Finance, Justice, Labor and Employment

Sponsors (4)

Last Action

Enrolled and presented to the Governor at 3 p.m. (on 09/16/2025)

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